JPMorgan Chase has reached an agreement to acquire Nutmeg, a British robotics consultant, and plans to use it as a platform for expanding wealth management, as the American group prepares to enter the country’s retail banking market.
The Wall Street bank said on Thursday that it has agreed to acquire the online wealth management company, which has expanded rapidly since its launch in 2012, managing approximately £3.5 billion in assets for approximately 140,000 customers.
The U.S. bank said that Nutmeg will complement the online retail banking business that JPMorgan Chase plans to set up in the UK. It plans to offer current accounts under the Chase brand later this year.
JPMorgan Chase stated that the London-based company will “form the foundation of the bank’s long-term international retail wealth management products.”
The bank stated that customers should expect Nutmeg’s products and services to not be affected by the ownership change, although it added that it will integrate them with Chase’s products and services “over time.”
After the completion of the acquisition, the Nutmeg executives led by CEO Neil Alexander will remain in office.
The amount of this transaction has not been disclosed and has yet to be approved by the regulatory authorities. It is expected to be completed in the second half of this year.